The article explains the debt snowball method for effectively eliminating debt. It recommends listing all debts, focusing on the smallest debt first while making minimum payments on others. Once the smallest debt is paid off, the payment is redirected to the next smallest debt, creating a cascading effect. It advises against accumulating new debt and suggests closing all but the oldest credit card account to simplify finances. This method, while potentially time-consuming, is noted as a proven effective strategy for debt reduction.
"The debt snowball method focuses on paying off the smallest debts first, which can create a sense of accomplishment and motivate further progress."
"It's essential to avoid acquiring new debts during the repayment process and prioritize the payment of high-interest debt if amounts are similar."
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